12-21-2012 11:18 PM - edited 12-21-2012 11:19 PM
hello everyone. I have been lurking here for quite some time now and took on great advices so far. Thanks for that!
Now I have a question myself. I searched and couldn't really find anyone with similar situation...
i am in need of a car and looked around. When I say need, although I live in nyc, my job requires me to travel further and public transportation is becoming too rough Now.
with the weather in NYC and other personal reasons, I think I have my mind set on a 2013 subaru wrx going for around 26k. I have around 3-4k down and don't really want to dip in to my savings.
my fico is at 660 with no baddies when I checked few days ago and currently making 72-75k a year and have been at the current employer for over 2 years.
I am renting and paying around $800 myself. Problem is, I have a thin credit file. Only 1 year of history with 3 cc (1 capital one secured @600, another unsecured at $500 and discover card with $1500).
Will I get approved for a loan? I figured loan amount will be around 26-27k after my down payment due to taxes and other charges. If I do get approved how high of interest am I looking at? Also can I refinance 6 months to a year after to reduce my interest rate?
thanks in advance everyone!
ps. Sorry for any typo, punctuation or grammar.... Typing on my phone right now...
12-22-2012 07:33 AM
I applied with my current credit union and with Capital One. My credit union approved us with $80K in documented income with credit scores of 665 and 699. 72 months at 3.49 interest. Loan amount $35000.
Capital one gave us 72 months at 3.65 percent. Loan amount $38400.
We had a string of bads on our mortgage which ended 4 months ago. One car loan which is a couple of years old and a couple of credit cards. I was really surprised with the approvals we received.
Based on your score and if you don't have a bunch of red flags, Capital One might be a good place to start. We got our approvals and will be negotiating with the dealer next week to see if they can do even better.
The credit union was originally going to give us 6.49 because they wanted to add 3 percent more due to us being considered "high risk" because we have a mortgage modification. I would have walked and pulled my other loan and refinanced it at another bank if they had done that.
Maybe this will give you some insight - good luck!
BTW I LOVE NYC and will be going there right after the New Year for a vacation! It's an annual tradition for our family! Just hoping the subways are back in action.......
12-22-2012 07:37 AM
12-22-2012 08:17 AM
Although your credit file is thin, you do have a year of payment history under your belt. Also you have stable employment that has exceeded 1 year. Score isn't in the dumps. You have decent income too so your DTI is very low.
With Capital One, you do the app online but they don't ask for down payment info. I think they just look for the clean history and good DTI ratio. You put in the requested amount and they come back with an approval based on your credit report and stated income. The only thing I had to provide once the app came back as approved were a couple of bank statements and a pay stub. That's because I have self employment income. You may only have to provide a pay stub.
You also have a Capital One credit card, so they might factor that in as well. BTW is your score from EQ or another "official" score provider? I've read all over the place that the "free" ones aren't always accurate. I know my free one was much different than my offical one!
I'm sure others will chime in on your thread as well.
12-22-2012 08:42 AM
12-22-2012 09:56 AM
12-22-2012 10:36 AM
12-22-2012 11:56 AM
12-22-2012 11:05 PM - edited 12-22-2012 11:06 PM
Should be fine. May even want to see if you can find a new 2012 still on the lots at a dealership, dealers will want to rid of it and that can help both in price and financing. December is a great time to be shopping as soon as the New Year rings in, it's not quite possible to sell a 2012 model as new anymore at least from a marketing perspective.
If this is your first financed car, then you likely will want to refinance as you suggest later; however, you're in a reasonable position for financing a new car anyway from what you describe. If you belong to any CU's or even have a solid banking relationship with a national bank, may want to check with them first; just don't start shopping for a car loan until you're ready to pull the trigger on the car so that all the auto inquiries will be rolled up into one from a scoring perspective.
Also you're really not that thin of a file with 3 revolving accounts and a year's credit history. If you need the car I'd take any loan I could get approved for in your situation, and then refinance... which is exactly what I did with a far worse credit file than you, and I'm sitting at a 5.74% APR loan now so a reasonable rate can be obtained even if you get stuck with an initial double-digit APR loan to start.
12-22-2012 11:24 PM
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